25. ENGINEERING DIVISION LOGNOTE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88-01418R000200120017-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: June 28, 2011
• Sequence Number: 17
• Publication Date: August 29, 1985
• Content Type: MISC

Approved For Release 2011/06/28: CIA-RDP88-01418R000200120017-1
25., , NG4INEERING DIVISION LOGNOTE - 29 August 1985
The Contracting Officer, Auditor and I met with COMSAT on 27 August to
review their revised bid for the Washington INTERNET Terminal. Although
they presented costs for the Clarksburg alternate, they informed us that
Clarksburg was not really a viable option any longer. It seems that their own
internal plans for antenna testing are such that construction of INTERNET
facilities would be significantly delayed.
The costs they presented, although reduced by approximately $2M, are
still based on a tariff arrangement which results in an actual markup of $2M.
This subject was discussed at the previous meeting and they were asked to
examine whether they could and/or would attempt to establish a different pro-
cedure for determining costs. As of this meeting, they indicated that they,
COMSAT, had only reviewed this question with their own legal staff. Predictably
the answer was nothing could be changed. Also they felt that if they couldn't
operate this way, then they were not interested in the project since they would
be restricted to 10-15% profit on actual costs.
It is my opinion that we will receive yet another offer since I told them
that we apparently had reached an empass, the alternative to which was to invoke
higher management discussion or recompete the entire project.
cc: DD/FBIS, C/OPS, C/ESG, INTERNET F1
Approved For Release 2011/06/28: CIA-RDP88-01418R000200120017-1